管理会计作业：Profit Planning

1、Chapter 7: The Master Budget: Profit Planning7.1-1Budgeting is a technique which is used to plan for future cash inflows and outflows. Answer: TrueDifficulty: 1LO: 7-1EOC Ref: S7-1AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Repo

2、rting 7.1-2A goal of the budgeting process is to assist managers with coordinating and implementing the business plan.Answer: TrueDifficulty: 1LO: 7-1EOC Ref: S7-1AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting 7.1-3Budget

3、s provide benchmarks that help managers evaluate performance. Answer: TrueDifficulty: 1LO: 7-1EOC Ref: S7-1AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting7.1-4A goal of the budgeting process is to communicate a consistent

4、set of plans throughout the company. Answer: TrueDifficulty: 1LO: 7-1EOC Ref: S7-1AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting 7.1-5Management must get employees to accept the budgets goals in order to effectively use t

5、he budget as a benchmark for evaluating performance. Answer: TrueDifficulty: 1LO: 7-1EOC Ref: S7-1AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting 7.1-6Which of the following is NOT an advantage of the budgeting process?A)

6、The budget process aids in performance evaluation.B) The budget process helps coordinate the activities of the organization.C) The budget process forces management to plan ahead. D) The budget process is costly and time consuming.Answer: DDifficulty: 2LO: 7-1EOC Ref: S7-1AACSB: Reflective Thinking A

7、ICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting 7.1-7Which of the following is NOT a benefit of budgeting?A) The budgeting process focuses managements attention on the future.B) The budgeting process improves the decision-making process.C) The budget

8、ing process improves employee motivation.D) The budgeting process assures profitability.Answer: DDifficulty: 1LO: 7-1EOC Ref: S7-1AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting 7.1-8Which of the following statements about

9、 budgeting is INCORRECT?A) The operating budget should be prepared by top management because they understand the overallobjectives of the company better than mid-management personnel.B) Budgeting is an aid to planning and control.C) Budgets help to coordinate the activities of the entire organizatio

10、n.D) Budgets promote communication and coordination between departments. Answer: ADifficulty: 2LO: 7-1EOC Ref: S7-1AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting 7.1-9Which of the following statements regarding the budget

11、ing process is correct?A) The budget should be designed from the bottom up, with input from employees at all levels.B) The budget should be approved by the companys external auditors.C) The budget should be designed by top management and communicated to lower-level personnel.D) The budgeting process

12、 should include limited input from lower management.Answer: ADifficulty: 1LO: 7-1EOC Ref: S7-1AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting 7.1-10For the budgeting process to be effective, management must focus only on t

13、he long-term budget.Answer: FalseDifficulty: 1LO: 7-1EOC Ref: S7-1AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting 7.2-1The master budget is the set of budgeted financial statements and supporting schedules for the entire o

14、rganization. Answer: TrueDifficulty: 1LO: 7-2EOC Ref: S7-2AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting 7.2-2The master budget includes the operating budget, the capital expenditures budget and the financial budget. Answ

15、er: TrueDifficulty: 1LO: 7-2EOC Ref: S7-2AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting 7.2-3The production budget must be prepared before any other component of the operating budget. Answer: FalseDifficulty: 1LO: 7-2EOC

16、Ref: S7-2AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting 7.2-4Which of the following budgets is a major part of the master budget and focuses on the income statement and its supporting schedules?A) Operating budgetB) Cash

17、budgetC) Capital expenditures budgetD) Sales budget Answer: ADifficulty: 2LO: 7-2EOC Ref: S7-2AACSB: Analytic Skills AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting7.2-5Which of the following statements is INCORRECT? A) The sales budget feeds into a

18、ll other budgets. B) The sales and ending finished goods inventory budgets determine the production budget. C) The sales and cash budgets determine the budgeted income statement. D) The budgeting process provides benchmarks that motivate employees. Answer: CDifficulty: 2LO: 7-2EOC Ref: S7-2AACSB: Re

19、flective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting 7.2-6The starting point in the budgeting process is the preparation of the: A) cash budget.B) direct materials budget.C) sales budget.D) budgeted income statement. Answer: CDifficulty

20、: 1LO: 7-2EOC Ref: S7-2AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting7.2-7Which is the correct order of preparation? A) Budgeted income statement; production budget; sales budget; direct materials budgetB) Sales budget; p

21、roduction budget; direct labor budget; budgeted balance sheetC) Production budget; sales budget; manufacturing overhead budget; direct materials budgetD) Any of the above Answer: BDifficulty: 1LO: 7-2EOC Ref: S7-2AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAI

22、CPA Functional Competencies: Reporting7.2-8The budget that informs management about their fixed assets expenditures is called the: A) cash budget.B) budgeted balance sheet.C) production budget.D) capital expenditures budget. Answer: DDifficulty: 1LO: 7-2EOC Ref: S7-2AACSB: Reflective Thinking AICPA

23、Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting7.2-9The budget that informs management about the amount of goods they will make is called the: A) cash budget.B) budgeted balance sheet.C) production budget.D) capital expenditures budget. Answer: CDifficult

24、y: 1LO: 7-2EOC Ref: S7-2AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting7.3-1The starting point of the budgeting process is to predict operating income for the upcoming period. Answer: FalseDifficulty: 1LO: 7-3EOC Ref: S7-3

25、AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting 7.3-2Budgeted finished goods inventory will increase when budgeted sales are greater than budgeted production. Answer: FalseDifficulty: 1LO: 7-3EOC Ref: S7-3AACSB: Reflective

26、 Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting 7.3-3Budgeted cash operating expenses include depreciation expense. Answer: FalseDifficulty: 1LO: 7-3EOC Ref: E7-11AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical

27、 ThinkingAICPA Functional Competencies: Measurement, Reporting 7.3-4Budgeted operating expenses for the current year include the expiration of insurance that was paid for in a previous period. Answer: TrueDifficulty: 1LO: 7-3EOC Ref: E7-11AACSB: Reflective Thinking AICPA Business Perspective Compete

28、ncies: Critical ThinkingAICPA Functional Competencies: Measurement, Reporting 7.3-5Desired ending inventory is 80% of beginning inventory. If cost of goods sold is $300,000, which of the following statements is TRUE regarding purchases?A) Purchases will be more than cost of goods sold.B) Purchases w

29、ill be 80% of cost of goods sold. C) Purchases will equal cost of goods sold.D) Purchases will be less than cost of goods sold. Answer: DDifficulty: 2LO: 7-3EOC Ref: E7-10AACSB: Analytic Skills AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting7.3-6Spe

30、ncer Company expects cash sales for July of $12,000, and a 10% monthly increase during August and September. Credit sales of $4,000 in July should be followed by 25% increases during August and September. What are budgeted cash sales and budgeted credit sales for September respectively?A) $13,200 an

31、d $6,000B) $14,520 and $6,250C) $14,520 and $6,000D) $14,400 and $6,250 Answer: B Difficulty: 2LO: 7-3EOC Ref: S7-3AACSB: Analytic Skills AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Measurement, Reporting7.3-7Which of the following budgets is NOT an opera

32、ting budget?A) Budgeted income statementB) Sales budgetC) Budgeted balance sheet D) Finished goods inventory budget Answer: CDifficulty: 2LO: 7-3EOC Ref: S7-3AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting7.3-8A March sale

33、s forecast projects that 10,000 units of Product A and 12,000 units of Product B are going to be sold at prices of $11 and $13, respectively. The desired ending inventory of Product A is 20% higher than the beginning inventory of 1,000 units. How much are total March sales for Product A anticipated

34、to be?A) $110,000B) $130,000C) $132,000D) $156,000 Answer: A Difficulty: 2LO: 7-3EOC Ref: S7-3AACSB: Analytic Skills AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Measurement, Reporting7.3-9Wright Company expects cash sales for July of $12,000, and a 20% mo

35、nthly increase during August and September. Credit sales of $4,000 in July should be followed by 10% decreases during August and September. What are budgeted cash sales and budgeted credit sales for September?A) $17,280 and $3,240B) $14,400 and $4,400C) $9,600 and $4,400D) $17,280 and $4,840 Answer:

36、 A Difficulty: 2LO: 7-3EOC Ref: S7-3AACSB: Analytic Skills AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Measurement, Reporting7.3-10Heath Company has beginning inventory of 21,000 units and expected sales of 48,000 units. If the desired ending inventory is

37、 15,500 units, how many units should be produced?A) 27,000B) 42,500C) 45,000D) 53,000 Answer: B Difficulty: 2LO: 7-3EOC Ref: E7-10AACSB: Analytic Skills AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Measurement, Reporting7.3-11Janeway Corporation desires a

38、December 31 ending finished goods inventory of 1,500 units. Budgeted sales for December are 2,300 units. The November 30 finished goods inventory was 850 units. What is budgeted production in units?A) 2,350B) 2,950C) 3,150D) 3,800 Answer: B Difficulty: 2LO: 7-3EOC Ref: E7-11AACSB: Analytic Skills AI

39、CPA Business Perspective Competencies: Critical Thinking AICPA Functional Competencies: Measurement, Reporting 7.3-12Which of the following budgets or financial statements is an operating budget?A) Capital expenditures budgetB) Budgeted balance sheetC) Sales budget D) Cash budget Answer: CDifficulty

40、: 1LO: 7-3EOC Ref: S7-3AACSB: Reflective Thinking AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Reporting 7.3-13Griffith Company has budgeted purchases of direct materials for December of $105,000. Expected beginning materials inventory on December 1 and en

41、ding materials inventory on December 31 are $120,000 and $129,000, respectively. If direct materials requisitioned purchases average 75% of direct materials purchases, what are budgeted direct materials purchases for December?A) $114,000B) $120,000C) $128,000D) $152,999 Answer: C Difficulty: 3LO: 7-

42、3EOC Ref: E7-11AACSB: Analytic Skills AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Measurement, Reporting7.3-14Which of the following statements is INCORRECT?A) Budgeted ending finished goods inventory will increase if budgeted production exceeds budgeted

43、sales during the period.B) Budgeted ending raw materials inventory will decrease if purchases of raw materials are less than the uses of raw materials. C) An increase in budgeted accounts receivable occurs when budgeted sales exceed budgeted cash collections from customers. D) An increase in budgete

44、d accounts payable occurs when budgeted purchases are less than budgeted cash payments to suppliers. Answer: DDifficulty: 3LO: 7-3EOC Ref: S7-31AACSB: Analytic Skills AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Measurement, Reporting7.3-15A department sto

45、re has budgeted cost of sales of $36,000 for its mens suits in March. Management also wants to have $15,000 of mens suits in finished goods inventory at the end of March to prepare for the summer season. Beginning finished goods inventory of mens suits for March is expected to be $9,000. What dollar

46、 amount of mens suits should be produced in March?A) $42,000B) $45,000C) $51,000D) $60,000 Answer: A Difficulty: 3LO: 7-3EOC Ref: E7-10AACSB: Analytic Skills AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Measurement, Reporting7.3-16Hogans management has for

47、ecasted sales of 50,000 units and an increase in finished goods of 10,000 units for the upcoming year. How many units is Hogan planning to produce next year? A) 50,000 B) 40,000C) 60,000D) 30,000 Answer: CDifficulty: 1LO: 7-3EOC Ref: E7-10AACSB: Analytic Skills AICPA Business Perspective Competencie

48、s: Critical ThinkingAICPA Functional Competencies: Measurement, Reporting7.3-17Yokeley Enterprises recorded sales of $160,000 during March. Management expects sales to increase 5% in April, 3% in May, and 5% in June. Cost of goods sold is expected to be 70% of sales. What is the budgeted gross profi

49、t for June?A) $54,508B) $112,000C) $127,184 D) $181,692 Answer: A Difficulty: 3LO: 7-3EOC Ref: E7-12AACSB: Analytic Skills AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Measurement, Reporting7.3-18Lan Corporation had beginning inventory of 42,000 units and

50、expects sales of 96,000 units during the year. Desired ending inventory is 31,000 units. How many units should Lan Corporation produce?A) 65,000 unitsB) 73,000 unitsC) 85,000 unitsD) 107,000 units Answer: C Difficulty: 2LO: 7-3EOC Ref: E7-10AACSB: Analytic Skills AICPA Business Perspective Competenc

51、ies: Critical ThinkingAICPA Functional Competencies: Measurement, Reporting7.3-19Liu Electronics budgeted sales of $400,000 for the month of November and cost of goods sold equal to 65% of sales. Beginning finished goods inventory for November was $80,000 and ending finished goods inventory for Nove

52、mber is estimated at $72,000. How much is the budgeted production for November?A) $252,000B) $254,800C) $264,800D) $265,200 Answer: A Difficulty: 3LO: 7-3EOC Ref: E7-10AACSB: Analytic Skills AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Measurement, Reporti

53、ng7.3-20Norton Company prepared the following sales budget:MonthBudgeted SalesMarch$200,000April$180,000May$220,000June$260,000The expected gross profit rate is 40% and the finished goods inventory at the end of February was $36,000. Desired inventory levels at the end of the month are 30% of the ne

54、xt months cost of goods sold. What is the desired beginning inventory on June 1?A) $36,000B) $39,600C) $43,200D) $46,800 Answer: D Difficulty: 3LO: 7-3EOC Ref: E7-11AACSB: Analytic Skills AICPA Business Perspective Competencies: Critical ThinkingAICPA Functional Competencies: Measurement, Reporting7.3-21Norton Company prepared the following sales budget:MonthBudgeted SalesMarch$200,000April$180,000May$220,000June$260,000The expected gross